I didn't say it was an annual distribution. I was quantifying the 'plus any return owed' in the original article. In a sale, the C holders get the greater of:

I didn't say it was an annual distribution. I was quantifying the 'plus any return owed' in the original article. In a sale, the C holders get the greater of: A) a % of proceeds as if all shares were ordinary shares, or B) what they paid the company for their shares PLUS 18% per annum accrued interest. So if the company were sold 9 years after they invested X, and the sale proceeds were less than 4X, the C shareholders would get 100% of the proceeds, the ordinary shareholders would get nothing.